Young People More Likely To Cut The Cable Cord

According to the latest J.D. Power and Associates survey, the younger you are, the more likely you are to either cut out cable service completely or to drop your pay subscription services. The older generation less likely to change their habits for new technology. In addition the survey found more satisfaction with over the top video services like Netflix and Redbox, then with pay subscription services like HBO or Showtime. "The survey found that Netflix and Redbox has above-average customer satisfaction scores, which were based on six factors: variety of videos provided; ease of use; cost of service; customer service experience; billing; and offerings and promotions."

While the 3% drop of cable services and 6% downgrade of pay services may appear small, the challenge is that it may indicate a trend that will only grow as more of the younger audience begin to change their viewing habits, from linear to on demand. Movies are the biggest threat to the pay services as consumers can access these titles through multiple resources. Where the pay networks can excel is with original content that they own and can limit their distribution paths. Customers that want to watch "Game of Thrones" on HBO must be an HBO subscriber. The longer HBO can withhold the series from DVD and non cable distribution platforms, the better it is to their subscription business.

While cord shaving today is the more serious threat, future cord cutting should not be so easily dismissed. Cable operators need to cut mobile distribution deals so that their linear and on demand lineups remain accessible both inside the home and out. And operators are facing struggles trying to negotiate deals with programmers for access of their networks on mobile devices authenticated with a cable subscription. But that always available coverage by the cable company will be a real game changer against these alternative distribution platforms.

Exclusive: Myspace to Be Sold to Specific Media for $35 Million

From All Things D, News that My Space is to be sold by Fox for less than 10% of it's purchase price to Specific Media. Can they really do something with My Space or is this another bad investment. Exclusive: Myspace to Be Sold to Specific Media for $35 Million

Is There Room For Another Social Network?

A simple question, how many social networks do you belong to. I count five for me, although I haven't gone on My Space in over a year and they are getting set to layoff employees and sell the business at a fraction of the purchase price. There is of course Facebook, where I admit, I visit throughout the day as well as LinkedIn for my business networking. There is Twitter, for quick updates of news and gossip. And most recently, Foursquare, where I am still a newbie. So let's call it four for active use; do I need another, not unless it can offer something uniquely better than what I already have.

"On Tuesday, Google introduced a social networking service called the Google+ project — which happens to look a lot like Facebook. ... But the Google+ project will be different in one significant way, which Google hopes will be enough to convince people to use yet another social network. It is meant for sharing with groups — like colleagues, roommates or hiking friends — not with all of one’s friends or the entire Web. It also offers group text messaging and video chat." Is that enough to make a difference? I would suspect that Facebook will quickly add this feature and more before Google+ is fully released.

This is not Google's first attempt at a social network. Previously there was Buzz which didn't get any praise reviews. Still it is hard to count Google out of the picture. They have proven an ability to come and compete and be successful. Their Android product has fared very well against Apple and the iPhone. And tying in Google+ with Android phones in a seamless way may be the right mix of social, group dynamics, and mobility that we need. Can they put it together and out the door before Facebook and others tweak their software? In this fast pace race, it is all about the timing.

E-Book Reader Vs Tablet, Can Both Survive?

It seems there is a healthy market today for both e-readers and tablets. In fact, ownership of e-readers is growing faster. "A new Pew report shows that the number of U.S. adults who own a dedicated e-reader (like a Kindle or Nook) has doubled since November 2010, to 12 percent... Pew found that 8 percent of adults own a tablet, compared to 5 percent in November 2010." I think that part of the reason for the e-reader faster growth is the significantly lower price point. And while the e-reader has some limitations, it is starting to become more web friendly. At the same time, it has a better screen for reading, lighter and easier to carry, and for it's primary use, does exactly what it needs to do.

In my own household there is a desire for both a tablet and e-reader. As a commuter, the ease of transporting a reader verse a heavy book is the primary appeal. And with an iPhone in her pocket, she will have the world at her fingertips.

Certainly at some point in the near future, there will be a convergence of these two products. The tablet will get lighter and thinner. It will switch from a rich graphical display to an easy to read print face (especially when bright sun is present), and may be flexible enough to perhaps even be rolled up for transport in a pocket. But until then, the e-reader of today has a great growth opportunity ahead of it.

Foursquare Finds Financial Foothold

Foursquare has found investment interest as it receives $50 million in funding. "The company, which allows users to announce their presence at an ever-growing number of bars, restaurants, offices, arenas, and public spaces recently passed the 10 million user milestone, and just this week inked a deal with American Express to allow Foursquare users with AmEx cards the opportunity to take advantage of cash-back deals." And add me on Friday as one more member.

I went out to the movies, dinner, and the beach this weekend, and each time, I announced my location. And each time, I annoyed my wife as I did it and became fodder for conversation with my friends. Comments like, "so now the crooks know you aren't home" and simply "why?". I have to say I asked myself the same question. None of my three friends on Foursquare live that close to me or did I suspect they would be at any of the places I visited. And I wasn't about to look for other members from their picture, that may also be at the same establishments. And lastly, I have to say, I didn't like having my iPhone beep the location of my friends locations. So after a weekend, I am already considering deleting my app.

Perhaps all I really want is for the location I am visiting to know that I am there and to perhaps treat me with a discount, coupon, or other goodie as a sign of loyalty. As for bumping into friends at locations, I'd rather it be a surprise; otherwise, it starts to look like stalking.

Is it fun to be a "mayor" of a location; I'm not sure I will ever get to know. Perhaps I am missing something, but Foursquare seems more fun as my kids' outdoor recess game. I'd love to hear other opinions, let me know your thoughts.

VOD II: The Empire Strikes Back | InteractiveTV Today

A great article on the future of VOD. Enjoy!
VOD II: The Empire Strikes Back | InteractiveTV Today

Fourstep Partners With American Express

An ideal partnership, matching consumers and their shopping preferences with their preferred credit card company. An innovative way to facilitate the purchase process. "Foursquare users are accustomed to receiving awards in the form of coupons and digital merit badges. But more substantial deals like those being offered to American Express cardholders may bring Foursquare and other location-based services further into the mainstream." As consumers get closer and closer to managing purchases with their smartphone, this arrangement gets Amex one step closer to the process. And it further cements the relationship between retailer and purchase process with deals and coupons as the glue.

"To start, American Express will offer deals at Sports Authority and the clothing retailer H&M, along with a few restaurants in New York, like Union Square Cafe and the barbecue joint Blue Smoke. For example, shoppers who spend $75 at H&M will receive a $10 credit to their American Express accounts. Those who spend $50 at Sports Authority will get a $20 reward." I have been reluctant to join Foursquare, but these kinds of deals get me to reconsider. And I am betting that others will feel the same.

Rewarding loyalty has its rewards and both Amex and Foursquare should see this partnership paying healthy dividends. I look forward to seeing how this partnership can further evolve.

Viacom Sues Cablevision, While Time Warner Cable Suit On Hold

Just as word came out this morning that Viacom and Time Warner Cable had stopped their lawsuits to get close to a settlement deal, a new suit from Viacom against Cablevision has arose. "Viacom said Cablevision's April 2 launch of a computer application to allow streaming of television programs through a cable modem to iPad tablets violates its agreement to distribute Viacom programing only on cable TV systems."

Cablevision's response was "Cablevision's very popular Optimum App for iPad, which has been available to our customers for nearly three months, falls within our existing cable television licensing agreements with programmers – including Viacom. It is cable television service on the iPad, which functions as a television, and is delivered securely to our customers in the home on Cablevision's own proprietary network.” This came from Jim Maiella.

To me the key point is that the location of wireless viewing is within the home and thus covered by a cable agreement. It is true yet short sighted. What the cable subscriber really wants is viewership OUTSIDE the home. And that is why this app, as nice as it might be, is not enough. For Cablevision, Time Warner Cable, and other cable providers, deals must be negotiated with programmers like Viacom to authorize access anywhere for an authenticated viewer. Of course, consumers could just purchase a SLingbox.

Is Yahoo Gaga Over Hulu?

It seems there is some interest in purchasing Hulu, and the unofficial reports say that it is Yahoo. As a competitor to Google and You Tube, this acquisition might make sense, but is there enough reward to justify the cost? "The unsolicited offer has prompted Hulu’s board to consider its options, and the company is speaking to potential advisers, these people said. It may contact potential buyers, including other media companies and private equity firms that have wanted the chance to buy the service." For Hulu's owners, NBC, Fox, Disney and others, separating themselves from a platform company may enable them to better determine how best to distribute their content. It may also help their negotiations with cable partners and to assure themselves that they are getting the best license deals.

A sale seems to make sense as well as these content partners don't easily get along. As they compete for ratings and ad dollars, it is tougher to then turn around and cooperate for Hulu business. It also restricts opportunities for each content company to design their own unique leverage opportunities to marry online content with linear. And for NBC, who is also owned by Comcast, a sale would get NBC out of this very complicated relationship.

And perhaps Hulu needs a different owner, one that is more committed to it's success. "Hulu has lost two of its most vocal backers: Peter Chernin, formerly the News Corp.’s president, and Jeff Zucker, who left NBC Universal last fall. James Murdoch, who became News Corp.’s deputy chief operating officer in March, is among those who is much more skeptical about Hulu’s business prospects." A Hulu-Yahoo combination might yield more favorable results although the cost for content will undoubtedly rise. It's one thing to sell content to your own company, another when you have no restrictions.

So let's see how real this rumor of a sale really is. I for one would like to see it happen.

Dot Anything

Remember the good ole days when a 212 area code meant NYC, 215 meant Philly, and .com meant business web address. Well the proliferation of smart phones and websites means that there is a shortage and the we must continue to grow the numbers. "The new rules affect what the industry calls top-level domain names, the familiar dot-coms and dot-nets that end every Web address. Now, instead of having to use one of those existing forms, users will be able to end their addresses with the name of their company, such as dot-Ford, or their city, like dot-Berlin."

But with this growth comes the need for zoning and now it seems it is harder than ever to know where a phone number is generated from or where a website originates. Exciting , yet problematic. "The shift, however, could also cause anxiety and disputes among governments, companies and other entities in safeguarding their brands and identities in cyberspace. Those seeking religious or political names, for example, could lead to sensitive situations."

Nothing can stop the proliferation of addresses, but certainly governance can help to better manage it. It certainly may hurt squatters to websites who hope to force brands to pay for rights to their name. Yet I am confident that new opportunities will present themselves. And in cases when companies with the same name in different industries each want access to their domain name, challenges will arise as well. It is the start of a whole new internet and let the battles begin.

Another Hack Job

First Sony was hacked and now it's Sega's turn. "Almost all data for 1.29 million users was accessed -- usernames, real names, birth dates, passwords, and email addresses. But curiously, credit card and debit card information remains untouched, says Sega." It seems that hackers are going after all types of companies that are digitally storing users' personal information. Where once you had to be careful that your wallet wasn't stolen, now there seems little we can do to protect ourselves from identity theft, stolen bank and credit card info, and other personal information.

And yet, we seem to be calm about this, until of course we are personally affected and fighting to keep our hard earned monies and good name. Every security effort seems to only raise the stakes and interest higher by hackers intent to prove that they are the best. Whether for sport or for criminal gain, it seems unlikely that hacking will ever end. As long as we are "on the grid", we remain at risk.

Cable Networks For Sale?

Rainbow Networks, a Cablevision company, plans to spin off at the end of the month and rebrand itself as AMC Networks. E.W. Scripps successfully spun off its cable programming arm, Scripps Interactive (SNI) with HGTV and Food Network, a few years ago. And the talk now centers on SNI potentially selling itself to another programmer. "SNI has long been eyed by a slew of big media conglomerates eager to bulk up their cable holdings. Disney Co., Time Warner, Viacom and even pure play Discovery Communications have been suggested as possible partners." As the cable industry matures, consolidation is necessary on both sides of the arena, for operator and programmer alike.

The merging of programming companies enables better economies of scale, cost and productivity efficiencies, and of course, more leverage in negotiation carriage and programming agreements. Certainly Rainbow saw that when they acquired Sundance Channel a couple years ago. And NBC has been picking up channels in its long run, including USA, Oxygen, and Bravo. With cable operators merging and consolidating operations, so too must programming networks in order to compete effectively in a changing marketplace. Will Scripps sell to a bigger programming company, will Rainbow? The long term bet is very likely.

New Settop Box, New Modem For Comcast Xfinity

From this week's Cable Show, Brian Roberts, CEO of Comcast introduces the audience to it's next generation converter box and modem.



Utilizing a Rovi guide and data stored in the cloud, the set top is designed to provide a graphically richer and faster user experience. Roberts "...used the time for a demo of one technology the company hadn’t yet decided how to deploy—1 Gbps downloads over a cable modem, which we were first to report. But most of the demo went to Xfinity TV features already used in Comcast’s Augusta, Ga. system, including nimble and robust search, apps and DVR management." I have to admit, I had seen this guide demonstration last year inside Comcast Corp as well as other projects including 3D. It will be a very impressive undertaking to switchout boxes and move subscribers to this new experience. With so much legacy set top boxes in the field and the capital costs associated with conversion, I wonder the time frame to bring this rich new experience into the home. And I worry that by the time Comcast gets even to scale, that consumers may have already ditched the set top and cut the cord to cable.

As this rich data is coming from the clouds, so should the content. The boxes seem to continue to rely on an EBIF approach while CE manufacturers are gaining ground with web connections for online content. It is this threat that should most concern the cable industry. Can Comcast deploy these new boxes fast enough to keep subscribers from downgrading and dropping video service? And can Comcast get it's programming partners on board to enable live streaming of channels to authenticated mobile devices outside the home. Certainly Comcast has the deep pockets but it needs to happen sooner rather than later.

QR Codes Invading Retailers

QR codes, those 2 dimensional, squiggly line boxes, are appearing in ads and on products. Go down the aisle of your favorite store and you may just start seeing them on the packaging of products. "The square patterns found in the corner of print ads, in store aisles and elsewhere can be scanned by consumers' smartphones and tablet computers to open a Web page, play a video or even place a call."

And while few consumers are using them, interest seems to be growing. Unsure how a product works, get a quick demonstration; download a coupon for just taking a snapshot. I also see great opportunity to capture information about a product and perhaps add your own notes. I'd love to see wine bottles add QR codes so I could remember which ones I may have tasted and to record my desire to buy again or not.

Applications for such use of QR codes abound. Whether in grocery or home improvement stores, real estate or restaurants, department stores or movie theaters, many companies could benefit from the addition of a QR code. And with their appearance on more and more print ads, awareness by the public will only grow.

Cable Competition Causing Cord Cutting

Great article in the LA Times this week that notes that the internet is not the cause of cable cord cutting. It is competition among cable, satellite, and telco providers that is hurting cable company's subscription growth, noting that "both satellite and telco video distribution services saw growth, while cable fell by almost 2%." Whether the cause of this migration is lower pricing, better service, unique content, or something else should all be considered, yet with the economy in turmoil, lower pricing is most likely the underlying motivation.

The article warns that this migration may still lead to true cord cutting. "The Nielsen study warns that younger Americans are spending an increasing amount of time watching content online." It is why cable operators are pushing to extend the reach and availability of their channel line-up online for mobile enjoyment. As consumers like having content follow them, this accessibility generates both new acquisition as well as retention benefits. Still, TV today remains the dominate means to view long form video content. And with better and bigger HDTV screens and the rise of 3D, a video subscription, whether from cable, telco, or satellite, it is the best means to enjoy it.

Networking DVRs Finding More Opportunity

Cablevision's early push for a cloud based DVR service for its subscribers showed that they clearly saw the future. And yet they were also forced to go it alone against content companies concerned with remote digital copies. It has taken Cablevision some time to settle lawsuits and move forward. And only recently has Cablevision "...started providing a remote-storage recording service in the city and that it had stopped buying physical digital video recorders." Well another cable operator may have also seen the light.

"Comcast will test the so-called cloud-based recording service in some markets late this year or early next year," according to Tony Werner, their CTO. With the legitimacy of the cloud pushed by Cablevision, Apple, and others, the time to remove the set top box from the TV seems to have arrived. And a cloud based or Network DVR (N-DVR) should also help cable operators to offer DVR content to other non TV devices, providing more benefits to a cable subscription package.

Certainly, this should be a concern to TV manufacturers, like Tivo. Hopefully, their software may be of value to cable operators in a N-DVR world; otherwise, there may be little reason for cable operators to want to negotiate with Tivo, simply because cable operators stop buying set top boxes.

But there are concerns with a N-DVR approach. For customers, a concern might be that a network version might have limited trick features attached to it. It is likely that a N-DVR will limit the commercial skipping fast forward feature that has been so widely applauded by DVR users. Another concern is that some content providers may force operators to not allow N-DVR of their content. For example, live sporting events like MLB or NFL games that viewers might N-DVR at home and then would watch on a mobile device. It limits for the sport content the chance to sell a second subscription web package to that cable customer. And customers might get annoyed that some content cannot be saved for later.

Regardless, the cloud is pushing ahead and will no doubt create some initial unsettling conditions. Over time, it will be the ideal choice for the sharing and watching of content, whenever, wherever, and whatever you choose.

Has Facebook Lost It's Luster?

Are we done with sharing? Tired of posting? Annoyed with too much information? Has Facebook become less valuable and thus we are starting to turn it off? "News hit the other day that Facebook may have lost about six million users in the U.S. in one month, according to Inside Facebook, a site that analyzes the social network for developers and marketers." With a US base at about 150 million, that is about a 4% decline in one month. But is it a fluke or a trend?

It doesn't seem too easy to delete an account and far easy to simply stop using it. And one month does not a trend make. More interesting would be to get deeper analytics from users to see if they are using it more or less. A US decline in usage may back up the assumption that Facebook is waning. The article suggests a few reasons, from seasonal adjustments to privacy controls, though I doubt either really matter to most.

For me, Facebook still remains relevant as the place to go to catch up on friends and family activities through posts and pictures. In fact, I prefer posting kid pictures on Facebook as opposed to e-mailing them; yet I still do both. But Twitter has become more relevant in comparison simply to get quick gossip and news on the fly. Is Facebook in trouble? Today I don't believe it is replaceable by Twitter nor is there anything on the horizon that offers something better. But I have no doubt that this news may be the impetus for another entrepreneur to find a better mousetrap to take over the social networking landscape.

DVD Sales Losses Lead to Layoffs

The rise and acceptance with digital content has made it unnecessary to own physical media forms. Who needs a CD or DVD when we are watching and listening with iPads, iPods, and laptops. Why clutter our home with cases and cases piled on bookshelves and closets and floors, when we can capture media on a drive and play anywhere. And with the iCloud, we won't even need to keep content local; we can just call it up from a remote server on demand. It is this changing world that has led to the loss of DVDs and CDs. With content easier to carry on a device, these disks become irrelevant. And so sales have dropped, production has slowed, and the business must be redeployed.

"Such reductions are a direct result of the continued drop in DVD sales. Purchases of DVDs, Blu-ray discs and digital movies fell 18% in the first quarter of 2011 compared with a year earlier, according to the industry trade organization Digital Entertainment Group." But why cut the employee count; why not take their expertise and move them to other uses. Consumers still like to own content and new ideas are still needed to push these consumers to buy digital content in new forms. Digital media remains a nascent business that consumers are still learning how to use effectively. For movie studios intent on selling their media, opportunities are there to offer unique digital content that is easy to access, easy to transport, easy to share, easy to play, and easy to interact with across current and next generation devices. These same employees may bring ideas to aid in the synergy that is needed to develop that next successful business model. The DVD business may be slowly ending, but the time is ripe for new growth models.

Texting Out, Skype In?

I like to text. Short, sweet, to the point. And minimal time involved. But as the above article states, texting is not as popular as before. "Experts said that the rise of broadband Internet meant the end of SMS as consumers could use it to send messages for free." I'm not sure I agree with the assessment.

Certainly the rate of growth has slowed but that typically happens as a product or service becomes ubiquitous. But texting is still growing. Wireless industry trade group CTIA found that in the last six months of last year one trillion texts were sent in the U.S. - but that was the smallest gain since a decade ago." Yet, texting still remains a useful tool for communication.

Still, the web has given rise to other communication tools and each will find their useful niche depending on the level or intimacy of communication needed. Skype
will also grow, especially as smartphones enable mobile video communication. And as far as texting not being cool; perhaps not, but always useful.

iTunes Makes No Profit! Really?

Within this NY Times article this morning about Apple giving Publishers a break comes this little gem, "As the largest distributor of music, for example, Apple generates a hefty stream of revenue for major labels. But the iTunes store accounts for just a sliver of its own revenue, and the company has said in the past that it generates virtually no profit from the store. In the most recent quarter, Apple said the sale of apps, music and content combined brought in just $1.6 billion of the company’s $24.6 billion in revenue." As they say on Saturday Night Live, "Really?"

So it makes just over 5% of Apple's quarterly revenue, what iTunes really does is make all of it's manufactured devices invaluable. Yes the iPhone, iPad, and iPod are great products, but consumers purchase them because of what they do and the content available. Content is King and the iTune store delivers the content that makes these products run. It is the little engine that could. These Apple products would not be nearly the hit they are without the iTune store. It's like a car that needs gas to run. And it is the iTunes quantity of content, wide assortment of apps, and ease of use that makes their products the more preferable purchase choice.

So don't underestimate the profitability that iTunes truly generates for Apple. It is the engine that drives it's products success. And it is why the iPad, iPod, and iPhone are the respective leaders in their category. Makes no profit, Really!

Microsoft Mulls Messing With The iPad

Microsoft has done many things well, but has also missed too. While they have captured the PC market, they have missed in the mobile space, most notably with the KIN and Zune. So the latest rumor has Microsoft trying again in the tablet space to compete again with Apple. "Microsoft is reportedly considering to launch an own-brand tablet PC that features Windows 8 by the end of 2012 with cooperation from Texas Instruments and Taiwan-based OEMs/ODMs, according to sources from the upstream supply chain." With the exception of the XBox, Microsoft's recent track record has not been good.

Other tablet makers get close to the iPad, but no one has yet to surpass it. And truthfully, it is not just the device. Apple's real rainmaker is it's iTune store. With it's apps, songs, videos, ringtones, and other content, the iTune Store is the engine that makes the iPad and Apple's other mobile devices so special. Relying on the Google Android store is not the best solution for Microsoft. It is time for their uniquely branded solution. Unless Microsoft truly commits to a strategic plan, their rumored tablet will likely not succeed.

Comcast To Offer Quadruple Play And It Isn't Cellular

It may not be a sexy business, but it seems to have a lot of synergy for cable. You have a wired home, you have remote connection to it, why not extend it beyond content. "Comcast Corp is adding home security to its package of services for homes where it already delivers cable television, broadband and phone. The largest U.S. cable provider sees security technology and home management technology as another way to enter new markets and tighten its relationships with existing customers." I love this idea and hope that Comcast and other cable operators pursue this farther.

But given that Comcast has no expertise in this field, I might suggest either an exclusive partnership with an existing security firm or better yet, buy one and rebrand it. This is great opportunity for both internal and external security. For families employing a Nanny, a chance to check in from work; for vacationers, an easy way to remotely adjust the HVAC system, and for security from intruders, more chance to protect and identify robbers.

Obviously safeguards need to be built in against power outages and battery limits, but these can all be figured out. With all the competition in the online space, cable operators may have just found a new business that will bring a nice revenue stream while piggybacking on the current infrastructure. Well done!

Content Platforms Shifting Online

What are the big content creators going to do; ABC, CBS, Turner, Scripps, and others have been very comfortable with a two stream revenue model of subscription and ad revenue. The cable operators have paid monthly license fees to content companies for the right to carry on their channel line-up. But the consumers want mobility and flexibility to watch what they want, where they want, when they want, and how they want.

And content makers have made separate deals with Hulu, Netflix, Apple, and others to offer programming on line. Where the cable operator can try to differentiate itself is by providing their live channel line-up content on line as well. "As the line between traditional TV and web video blur, it will no longer make sense for networks to distinguish between TV and every other video-capable device. This means migrating not only single programs to the web—along the lines of what Hulu, Apple, and others do now—but also letting viewers access traditional linear television from mobile phones, iPads, and of course computers." Slowly, apps are being offered to offer live feeds although the consumer is restricted to watching inside the home. That is not what the consumer ultimately wants. They want complete freedom, untethered from their cable line and cable settop box. For those with a Slingbox, mobility already exists, but it still requires a devoted settop box not being used at the same time in the home.

Online right fees for live network carriage adds another wrinkle to the cable operator. Ultimately, live content mobility is a game changer in the cable industry. Will franchises still be required or will cable companies actually start to compete with each other as consumers get the opportunity to select their mobile cable carrier? Will programming networks think to bypass operators to offer a direct subscription to the consumer? Or will Apple or Amazon come and offer themselves as the platform to sell subscriptions to networks? If so, the cable operator business changes from being a network platform to a broadband platform and they will change their pricing models as well to reflect usage fees.

"Executives from Disney, Turner, and Comcast were in unanimous agreement that we are only two years away from 75 percent of TV content being available online and on mobile devices." On demand content yes, live content, not so fast. And as you can see, it will only lead to many more questions and many more new opportunities.

Goodbye Settop, Hello XBox

So many boxes eager to help you cut the cable cord and enjoy web-based programming. And Microsoft, who in the late 90's invested heavily in Comcast, seems to be rethinking its relationship to push its own platform. "The company also unveiled plans to allow Xbox users to control live television feeds, search YouTube and play video games with voice commands." Should Comcast and the other cable operators be concerned with this news?

"Perhaps one of the biggest entertainment additions to the Xbox will be UFC. Starting this fall, Xbox Live Gold Members will be able to subscribe to UFC to access live pay-per-view matches, classic fights, interviews and behind-the-scenes bonus features. Microsoft said Live TV would be offered by domestic and international broadcasters, but had no other details at the time of the announcement. While Live TV for Xbox 360 is offered in other countries, the service will unveiled Monday would be the first such offering for a game console in the US. Xbox 360 already has the ability to stream and download movies and shows, however." So now Microsoft is competing with cable for a share of their PPV audience. And reaching directly to broadcasters to enable digital access through their device. I wonder, would NBC ever agree to distribution through the XBox or would Comcast try to prevent it? Certainly a question that one day could find itself in front of the FCC.

The cable platform continues to take many hits from the CE industry. Once cable operators refused to play nicely, they continue to find ways to bypass the settop box to directly touch the consumer. The XBox Live platform may one day be the architect of how consumers watch programming and simultaneously interact with it and other viewers. For now, it looks like a good start.

It's Cloud Illusions I Recall

"I've looked at clouds from both sides now, From up and down, and still somehow, It's cloud illusions I recall, I really don't know clouds, at all." Who would have expected that Joni Mitchell got it so right in her song Both Sides, Now. But with the big Apple announcement today, the question for consumers is, Do you know clouds, at all?"

"Apple’s highly anticipated iCloud is expected to make it easier than ever before to listen to your own music anywhere you have an Internet connection." But consumers may want more. Not just music, not just video, but every scrap of data, from address books to spreadsheets, word documents to recipe cards, accessible everywhere and anywhere, at the touch of your finger. Why clutter your own device, when it can be reached remotely, yet securely.

Ahh securely. Now that is a key issue. With Sony getting repeatedly hacked, and others leaving hard drives with sensitive data stolen from their cars, it is hard to feel safe when it comes to personal information. Safety concerns exist on many levels, from the music industry enabling their songs to be protected to consumers worried about their social security and credit card numbers. While the cloud offers many conveniences, can the risk issues be successfully minimized.

Joni's song gets to the heart of the problem. There is still so much we don't know about clouds. The sensitivity of what is placed in the clouds and the protection from being stolen. "It's cloud illusions I recall, I really don't know clouds, at all."

Music In The Clouds

No big secret that Apple wants to be our connection to music and video. And we now know what Apple is doing with their cash. "Apple will fork over between $100 million and $150 million in advanced payments to the four major music labels in order to get its iCloud off the ground, three separate sources told The Post." That means that Apple will have put together a plan in time for it's big announcement next week. And it adds one more feather to the iPhone, iPod, iPad family; all your music available without needing to fill up your hard drive.

"One executive explained that the cloud service will initially be free to people who bought their music from Apple's iTunes store, but Apple is said to be considering a $25 a year charge in the future." Is Cloud access worth a $25 annual subscription? Or do we feel that purchasing the song or movie should entitle us to availability regardless of where it is stored? If consumers buy in to the iCloud as a subscription service, it means that Apple has uncovered another important revenue stream and has beaten their competition to the punch. Certainly Google must be worried that, despite announcing first, they couldn't get their cloud service out quickly.

Anytime Apple announces, devotees wonder what else will be released. While the early PR has all been on cloud computing, some are hoping for more news on their hardware products. Regardless, Apple continues to capture the public's attention with their eye focused squarely on future opportunities.

Time Warner Cable Sees Broadband Only Opportunity

Yesterday's blog talked about the loss of the "all you can eat" broadband consumption model and cable's hope to retain it's triple play business. It also touched upon new competition that could face cable in a broadband only model. And of course, once you hit send, there is an article about Lightsquared, Inc. hoping for approval to compete in this space. But where some cable companies may be fearful of a broadband only world, another seems to embrace it.

"Time Warner Cable Inc. Chief Executive Glenn Britt said Wednesday his company has an opportunity to win more broadband-only customers as broadband replaces TV as the cable industry's anchor product." Changing times require changing strategies and Time Warner Cable seems to get it. Like Netflix changing its model from DVD rental to streaming, TWC is taking its first steps to grow its broadband business as it's linear cable model is slowly declining. And like Netflix, TWC recognizes that this change takes time, but must be embraced. Otherwise, they begin to look like Blockbuster, late to the game, and hard to remain in play.

With Lightsquared planned release early next year, TWC and other cable companies need to redefine their business strategy to remain ahead of other competitive entrants. Knowing that these companies may try to underprice cable companies to encourage cord cutting, cable must strategize and market its competitive differences and push a pricing model that retains and grows subscribers. A usage pricing model is not the answer; TWC is trying hard to retain with its TV Essentials cable package as a way to keep consumers connected. Cablevision has used Optimum Rewards as a strategy to retain its best, triple play customers.

Cable Companies must understand that broadband access has become an important service for the consumer, even ahead of phone and cable. Strategies must continue to evolve to find the next consumer need. Yesterday was triple play, but not anymore. It is a broadband world and cable needs to build mobile accessibility to it and rethink its pricing models. Or like Blockbuster, this may be the start of their decline.

3D Movies More Fad Than Fancy

As I have written previously, I am not a fan of 3D movies, didn't consider buying a 3D HDTV, or have ever found the experience of watching 3D unbelievable. It seems I am not alone. "The novelty has apparently worn off and Americans are now opting for cheaper, less gimmicky 2D movies, such as the recent huge hit 'Hangover 2.'"

Is the economy partly to blame, perhaps. Is it that the experience of watching 3D requires special glass an issue; for me, absolutely. "Because 3D movies are significantly more expensive to attend, and because only a few movies like 'Avatar' have ever really made 3D seem truly amazing. For most movies, it's a lame add-on that doesn't add much." Hopefully, one day there will be a technology that supports a truly 3D visual experience. Once again, Star Trek may have had it right with their holodeck idea.

Entrepreneur Opportunity For Broadband Business

Attention Entrepreneurs! Seeking a continuous source of subscriber revenue? Interested in competing in a business where demand for consumption is only growing? Then have I got an opportunity for you. Because cable companies are fearful that their triple play business model is reducing to a pipe only world, they are seeking to clamp down on broadband usage by their current customers. "With companies like Netflix and Hulu threatening their subscription-cable business, companies including AT&T, Comcast and Charter no longer want to aid the competition by offering consumers all-you-can-eat broaband." And logically it makes sense, only it doesn't satisfy the consumers' need for more streaming. Charging on a per bit cost is reminiscent of the days when phone companies charged per minute for calls.

So who could ideally get into this business to compete with cable and provide consumers with an alternative broadband company. I have a couple suggestions. First would be for the utility companies to consider broadening their business. Electric, gas, and water companies already reach out to every home in their community. Using existing relationships and local service, they could build out a wired and wireless grid to offer competing broadband coverage.

Mobile phone companies could also offer more streams to homes and build out a WIFI platform in their communities. And lastly, let's build out a national WIFI network. No doubt, a subscription model could open up an ad sales opportunity as well bringing an additional revenue stream into the equation.

Clearly the cable companies have something at risk, with cord cutters and cord shavers scaling back their subscription for broadband access only. Offering an "all you can eat model" only hurts the cable subscription business structure. But there are consumers who only want broadband access, inexpensive and accessible. Hence a new business ripe for the taking requiring some capital expenditure to get it off the ground. Good luck. I'd love to help start it.